Iran Conflict Hits Indian Coffee Exports, Sparks Price Fears

A major shipping disruption is causing significant problems for India's coffee exporters. Key trade routes through the Red Sea have become unstable due to the Iran-Israel conflict, forcing longer and more expensive journeys. This crisis is squeezing exporters who sell to Europe and the Middle East. Shipping lines are avoiding the Red Sea and Suez Canal because of security threats. Instead, vessels must travel around Africa, adding 12-14 days and at least $1,500 per container in extra costs. "Freight rates have doubled. The longer transit time also means our payments are delayed," said one leading exporter. Buyers in Europe are now hesitant, asking for lower prices or delaying new orders. India exports roughly one-third of its coffee production. While the domestic market remains stable for now, industry leaders warn that if the shipping crisis continues, global coffee prices could rise. Exporters are urgently asking the Indian government for financial support to offset these new costs.